Tanzi, 65, was arrested Saturday in a Milan street. He resigned as head of Parmalat after the Bank of America revealed that Parmalat's claim to have $4.9 billion in investments and cash in its Cayman Islands subsidiary Bonlat was false.

He is now under investigation along with 20 others, including current and former Parmalat executives, for suspected crimes including fraud, false accounting, and market rigging. Ministry of Finance investigators estimated that Parmalat's total loss was around $12 billion.

At the heart of the scandal there was deception but not theft, Tanzi's lawyers maintained Monday. "No money disappeared," declared attorney Michele Ributti, "it's just non-existent assets." But the prosecution wants Tanzi remanded in custody, arguing there was a danger he could flee the country.

Meanwhile, the Milan stock exchange Monday suspended trading in Parmalat Finanziaria shares. By Dec 22, they had plunged to .11 euros ($.14) from a peak in September of 3.1 euros ($3.87).